Before you answer that knock at your door, listen up. Solar panel salespeople are canvassing neighborhoods across Houston. Some 55,000 homeowners in the Houston area have them now. Investigative reporter Amy Davis has what you should know before you sign on that iPad or tablet.
KPRC 2 Investigates hears from a lot of viewers with solar panel problems
It often starts with a knock at the door from a friendly salesperson who wants to share some information with you. Then people are trapped in confusing contracts.. sometimes with equipment that doesn’t work as advertised or at all.
Charles Moster of the Moster Law Firm helps people fight deceptive solar panel companies. He joined me for an episode of Ask Amy to help warn people about deceptive practices from these companies.
Trick 1 - they tell you the panels will be free
“They talk about how wonderful solar panel is, solar panels, wonderful, almost free electricity, and they’re going to be able to save you close to 100% of your current electric bill if not 100% of your current electric bill,” said Moster. “You’ll have money left over because you, the actual energy company, will sell you back energy that they buy from you.”
RELATED: “Free” solar panel promise leaves couple with huge bill
President Biden signed the Inflation Reduction Act into law, expanding the Federal Tax Credit for Solar Photovoltaics, also known as the Investment Tax Credit (ITC).
In Texas, there are no government grants for solar panels. There is a tax credit that can potentially 20-30% if you qualify but it will never be free.
Trick 2 - they give false information
Salespeople often misrepresent how much money the panels can save and exaggerate how much electricity they will produce.
“You buy the whole system. It never produces the amount of electricity as advertised to reduce your electric bill by one iota. You may pay suddenly $200 a month, plus your prior electric bill, and save, hey, a whopping 20 bucks,” explains Moster.
Trick 3 - the contract is complicated
A solar panel contract can be dozens of pages long. To add to the confusion, it’s often presented on digital devices that are hard to see and navigate. This leaves customers confused.
“They have no idea what the terms are when they sign it. They sign it based on the presentation. It is false that they are going to have all this money. The signing of the agreement is just an afterthought.”
Moster says in a number of cases the person is actually directing them what to sign digitally, and they’ve also had incidents of forgery.
In Texas, you have a three-day right to cancel anything you buy from a door-to-door salesperson. But in all of the cases we have investigated the salesperson doesn’t leave you a copy of the contract or paperwork that explains how you can cancel.
Trick 4 - the solar company doesn’t plan on sticking around
“These companies go in and out of business almost like day or night. They deliberately create an artifice of a company present themselves as being part of a company, and they have no intent typically to stay around more than a year.”
RELATED: See the full Ask Amy episode with Moster here.
Here’s what the Better Business Bureau says you should always consider about solar panels:
- Make sure the contract says what will happen if something breaks or if the manufacturer goes out of business.
- Ask about warranties. A reputable company should offer you some sort of equipment warranty.
- Consider the condition of your roof. If you need to get roof repair you’ll have to get the panels removed and put back on which is a huge hassle. And can be expensive.
You should also call a tax professional to see how much of a tax credit you would actually get if you purchased solar panels. The person installing the panels should be a licensed electrician. You can check license records here.
We have more Solar Panel FAQs in this Ask Amy episode.